President Lee Jae-myung wrote on X (formerly Twitter) on the 28th, "How about reinvesting in strengthening regional and public health care with a sugar levy, like with cigarettes?" He shared an article that said "80% of respondents in a Seoul National University Health Culture Project Group survey supported introducing a sugar tax."
A sugar tax is a tax levied on foods with added sugars, such as soft drinks and snacks. It is said to have been introduced in more than 180 countries. Some argue that implementing a sugar tax can reduce obesity, but there are counterarguments. There is also criticism that low-income people, who consume more sugar-containing foods, could bear a relatively heavier burden.
◇ Sugar tax introduced in more than 180 countries on World Health Organization recommendation
Countries began introducing sugar taxes on the recommendation of the World Health Organization (WHO). In 2016, the WHO sent member states a recommendation to "impose at least a 20% tax on sugar-sweetened beverages to prevent chronic diseases such as obesity and diabetes." Since then, the United Kingdom, Italy and France have implemented sugar taxes.
In Korea, in 2021, then-Democratic Party of Korea lawmaker Kang Byung-won proposed an amendment to the National Health Promotion Act to introduce a sugar tax, but it was not substantively discussed. The bill sought to create a rule requiring manufacturers to pay a levy of 28,000 won if processed foods exceeded 20 kilograms of sugar per 100 liters.
Recently, discussion on introducing a sugar tax took place at a "sugar overuse tax forum" hosted at the National Assembly in Sep. by Democratic Party lawmaker Jeong Tae-ho. Yoon Young-ho, a professor at Seoul National University College of Medicine who delivered the keynote, said, "The National Assembly and the government should actively pursue social consensus on a sugar overuse levy as a moral responsibility to remedy the health damage already inflicted on the public."
◇ Taxing food manufacturers … "The burden could be passed on to consumers"
Most countries that have adopted a sugar tax require food manufacturers to pay taxes in proportion to the sugar content of foods and beverages they produce. It is a structure in which food manufacturers can pass the burden on to consumers by raising product prices.
The United Kingdom has introduced a "soft drinks industry levy," taxing 18 pence to 24 pence (about 300 won to 480 won) per liter (ℓ) if a drink contains 5 grams or more of sugar per 100 milliliters. Recently, it also decided to impose a sugar tax on manufacturers for drinks made with milk or soy milk.
France taxes between 4.07 euros and up to 35.63 euros depending on the amount of sugar included per 100 liters of beverages. If sugar is 5 kilograms or less, it is 4.07 euros; 5 kilograms to 8 kilograms is 21.38 euros; and more than 8 kilograms is 35.63 euros. France also taxes zero-calorie drinks sweetened with artificial sweeteners instead of sugar. If the sweetener is 120 milligrams or less per liter, the tax is 4.50 euros per 100 liters; if it exceeds 120 milligrams, the tax is 6 euros.
◇ Hard to conclude it reduces obesity … burden may grow for low-income people
In countries that introduced sugar taxes, carbonated drink makers reportedly reduced sugar content or saw declines in sales of carbonated beverages. However, although the sugar tax was introduced to reduce obesity, it is difficult to conclude that it actually has that effect.
In the United Kingdom, tax revenue increased by 153.8 million pounds from April to Nov. 2018 due to the introduction of the sugar tax, only one-third of the 500 million pounds the government expected. The U.K. government assessed that this was "because sugar drink manufacturers proactively reduced the sugar content of beverages, among other measures."
However, the effect on reducing obesity has not clearly emerged. According to a 2023 study by the University of Cambridge in the U.K., after the introduction of the sugar tax, obesity cases among sixth-grade girls in U.K. elementary schools decreased by about 8%. In contrast, there was no significant effect among boys of the same age.
Meanwhile, Santé publique France said in a 2019 study that after the sugar tax was introduced, France's sales of carbonated drinks fell by about 3% to 4%, and among teenagers in particular, the share drinking water or tea instead of high-fructose beverages increased. However, France's adult obesity rate rose from 10% in 2000 to about 15% in 2012, and then to 17% in 2024. Again, it is difficult to assert that there is an effect on reducing obesity.
There are also concerns that a sugar tax could impose a relatively heavier burden on low-income people. In a 2022 report, the Korea Institute of Public Finance(KIPF) said, "Sugar-laden carbonated drinks are price inelastic (-0.533), so the tax rate needs to be high for the policy to be effective." Also, according to the Disease Control and Prevention Agency, as of 2023, the obesity incidence rate was 38% for the bottom 20% income group and 31% for the top 20%. The higher obesity incidence among low-income people may be due to environments in which sugar-containing foods and drinks are frequently consumed. As a result, a sugar tax could drive up the prices of drinks and snacks, potentially passing the burden on to low-income people.